29 of April 2015

SEFA poised to foster private sector participation in renewable energy in Mozambique

The Sustainable Energy Fund for Africa (SEFA) has approved a USD 740,000 technical assistance grant to the Government of Mozambique to enhance the enabling environment for private investments in the country’s promising renewable energy sector.

Specifically, the new SEFA grant will support the implementation of the country’s feed-in tariff regime for small/medium renewable energy projects, through the provision of standardized power purchase agreements, guidelines for grid connectivity and investor guidelines for prospective developers.

The grant will additionally lay the foundations for a mini-grid regulatory framework, with special focus on designing a tariff structure and corresponding technical and environmental regulations, as well as providing capacity-building and awareness-raising activities for national and local representatives.

After the approval, Joao Duarte Cunha, SEFA Coordinator at the African Development Bank (AfDB), stated: “this SEFA project will play a key role in unlocking investments in small-scale renewables, particularly in rural areas where needs are greatest. This will certainly improve energy access for households and businesses while reducing dependence from large-scale hydro and upcoming coal and gas projects”.